9911796707
TMI Blog2023 (4) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... re amount of Rs. 50.00 Lakhs was not an amount of duty as has been held by the adjudicating authority below. It was merely a revenue deposit. The issue is no more res-integra and these observations have attained finality vide several decisions including the decision of Hon ble Apex Court in SANDVIK ASIA LIMITED VERSUS COMMISSIONER OF INCOME-TAX AND OTHERS [ 2006 (1) TMI 55 - SUPREME COURT ] where it was held that Once finding recorded by Tribunal that amount deposited by appellant during investigation as also that deposited pursuant to interim order passed by Tribunal was revenue deposit and not Excise duty deposit and there was no challenge to this finding of Tribunal, Department, after Commissioner (Appeals) allowed appeal allowin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 51203/2022 - Dated:- 5-12-2022 - DR. RACHNA GUPTA, MEMBER (JUDICIAL) Mr. Naveen Mullick, Advocate for the appellant Mr. Iswar Charan, Authorized Representative for the Respondent ORDER The present appeal has been filed to assail the Order-in-Appeal No.02/2021 dated 05.07.2021 vide which the interest on the amount of refund has been granted from the date of appeal till the date of payment. The facts in brief for adjudication are as follows : That initially a demand was proposed against the appellant pursuant to search in his premises on 30th September, 2008. On the said date itself the appellant was made to deposit certain amount. Consequently, an amount of Rs.10.00 Lakhs by way of two cheques was got deposited b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the appellant and Mr. Iswar Charan, ld. Authorised Representative for the Revenue. 5. Ld. Counsel for the appellant has mentioned that the amount in question stands deposited for last more than 10 years. Rs. 10,00,000/- Lakhs was deposited on the date of search itself i.e. on 30th September, 2008 and remaining Rs.40.00 Lakhs was deposited pursuant to the directions of this Tribunal vide order dated 13th May /12th August, 2011. It is submitted that the amount was otherwise neither the amount of duty nor the amount of pre-deposit. It has been retained by the Department for long number of years. Thus, the appellant is entitled to claim the interest there upon from the date of deposit itself. It is therefore, submitted that the findings o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of search itself and Rs.40.00 Lakhs were deposited pursuant to the directions of this Tribunal in order dated 13th May, 2011/ 12th August, 2011. Paragraph 7 of the said order reads as follows:- 7. So we are of the view that the Appellant need to make pre-deposit and the case should be sent back for a denovo consideration. At this stage the Counsel for the Appellant suggests that an order for pre-deposit of an amount of 40 lakhs will be reasonable and Appellants are willing to pre-deposit this amount. So we order, accordingly. 8. Perusal thereof makes it abundantly clear that the amount of Rs.40.00 Lakh is an amount of pre-deposit i.e. an amount paid under section 35 F of Central Excise Act. The refund thereof is permissib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .C.), Hon ble High Court of Allahabad also in the case of Pace Marketing Specialities v. Commissioner of Central Excise reported in 2012 (27) S.T.R. 420 (All.) = 2011 (274) E.L.T. 13 and Ebiz.Com Pvt. Ltd. V. Commissioner of Central Excise, Customs Service Tax reported in 2017 (49) S.T.R. 389 (All.), this Tribunal also in the case of Riba Textiles Ltd. Village Chidana, Tehsil Gohana Distt. Sonepat, Haryana v. Commissioner of Central Excise and Service Tax, Panchkula reported in 2020-TIOL-932-CESTAT-CHD] and recently in the case of Parle Agro (P) Ltd. (supra) this Tribunal has clarified as follows:- Once finding recorded by Tribunal that amount deposited by appellant during investigation as also that deposited pursuant to interim orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities and Ebiz.Com Private Limited, wherein after making reference to the decision of the Supreme Court in Sandvik Asia Ltd., the High Court granted interest at the rate of 12% per annum in matters relating to refund of amount deposited during investigation and adjudication. 40. In Riba Textiles, the Tribunal also granted interest at the rate of 12% on refund of amount deposited during investigation and at the time of entertaining the stay application. 41. In view for the aforesaid decisions, and the fact that the rate of interest varies from 6% to 18% in the aforesaid Notifications issued under Section 11AA, 11BB, 11DD and 11AB of the Excise Act, the grant o interest @ 12% per annum seems to be appropriate. 11. In the lig ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
